The Los Angeles City Employees’ Retirement System (LACERS) will give preference to Los Angeles-based companies in its alternative investment allocations, providing all else is considered equal in terms of performance, strategy, personnel, and philosophy.
The Alaska Permanent Fund Corporation Board of Trustees has called a special meeting for October 15, to discuss among other things the performance of the executive director and the fund’s securities lending agenda.
In this latest paper, Watson Wyatt, suggests some changes to redress the imbalance in private equity fees including changing the basis on which a manager sets its management fees; and that GPs should consider phasing in management fees over the investment period to reduce the significant fee drag from paying on commitments early in the life of a fund.
The market is no longer undervalued, according to the views of more than 200 funds managers in the September Russell Investment Manager Survey, which among other things found that 54 per cent of managers believe the US equity market is now fairly valued.
The 2009 cost of doing business survey by the Callan Investments Institute found that fees paid by US funds have been increasing on the back of higher allocations to more expensive asset classes and lower allocations to passive investment. Amanda White spoke with Callan’s executive vice president and director of capital market and alternatives research, Jay Kloepfer, about the appropriate asset allocation reactions to this phenomenon, and the value investors should expect for the fees they pay.
Many US fund sponsors believe they have not received fair value for the fees they paid to investment managers in recent years, a survey by Callan Associates found.